UN: Global economy shrinks 3.2 percent in 2020

The United Nations organisation (OKB) predicts that the global economy will contract 3.2 per cent this year because of Covid-19.

The report released today on the world economic situation and prospects for the second half of 2020, says that the global economy will show a sharp contraction of 3.2 per cent this year, prompted by the outbreak of Ovid-19.

Stressing that economic contraction will be the largest since the Great Depression in the 1930 ' s, the report says that the global economy is expected to lose about $8.5 trillion in 2020 and 2021, due to the epidemic and the recent four-year profits will disappear.

The report predicts that developed economies will contract by 5 per cent this year and 3.4 per cent in 2021.

There is also said to be a sharp decline in global demand and the supply chain deteriorated, and that international trade would contract by about 15 percent this year.

Covid-19 also increased income poverty and inequality, and this epidemic is likely to make 34.3 million people fall below the limit of “extreme poverty” this year and 56 percent of poverty growth will occur in African countries, the report concludes.